Mary Ann Dick

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Document Type


Degree Name

B.S. (Bachelor of Science)

Legacy Department

Department of Finance


In the past few years, there have been major changes in the airline industry. These changes have come about because of the deregulation act of 1978. The industry had been regulated almost since its inception. In 1938 the Civil Aeronautics Board was established to economically regulate the industry. CAB had control over authorizing new carriers, new routes, and fares. Since deregulation, the carriers have control over setting their own fares, and there are no longer barriers to entry or exit. In looking at effects of deregulation it is important to first get an understanding of the theory of market organization for the airline industry and then and understanding of what it was like during regulation. After regulation, a look at the major provisions of the Deregulation Act of 1978 and the theory behind it will be done. The next step will be the early effects of deregulation and then the trends of the industry in the past couple of years. Finally, a verdict on deregulation will be given, followed by a look into the future of the industry.


Includes bibliographical references.


32 pages




Northern Illinois University

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